- (1.) The appellants manufacture aluminium extrusions of various kinds, including aluminium pipes. An exemption notification (No. 180 of 1988 dated 13-5-1988) , as amended from time to time, applied to such products, Item 16 thereof dealt with aluminium pipes conforming to the standards laid down therein. These were liable to nil rate of duty, subject to the condition: "(L) F the Assistant Collector of Central Excise is satisfied that such pipes are intended for use in the manufacture of sprinkler equipment for agricultural irrigation purposes. "the second proviso to the said notification stated: "Provided further that in respect of goods mentioned against SI. Nos. 1,5,6,7, 10, 11, 12, 14 and 15 of the said Table, the exemption contained in this notification shall not apply if credit of the duty paid on the goods used in their manufacture has been availed under Rule 56-A or Rule 57-A of the Central Excise Rules, 1944. "
(2.) The appellants had availed of the exemption under the said Item 16 in regard to pipes that were intended for use in the manufacture of sprinkler equipment for agricultural irrigation purposes. They were issued with a notice to show cause why they should not be made liable in this behalf on the ground that, before effecting clearances of such aluminium pipes, they had not reversed the MODVAT credit amounting to Rs 29,59,084.15p. taken on the inputs therein in contravention of provisions of Rules 57-A, 57-C and 57- of the Central Excise Rules, 1944. Moreover, they had utilised the credit while clearing other products.
(3.) The show-cause notice having been made absolute and an appeal rejected, the appellants moved the Tribunal.;